Prime freehold resale homes now available at new leasehold suburban prices
Prime freehold resale homes now available at new leasehold suburban prices. The Business Times (BT) searched PropertyGuru, Singapore’s largest property platform, and discovered nearly two dozen developments selling for less in desirable districts 9, 10, and 11.
A cross-check was also performed to ensure that the requested prices corresponded to the actual cost. Residences in the Core Central Region (CCR) may be less expensive than new leasehold homes in the Outside Central Region (OCR), according to BT research (OCR).
For S$1.6 million, a freehold 797 sq ft 2-bedroom Sophia Residence home in District 9 is offered. A 1,066 square foot 2-bedroom Verdure At Holland Park flat in District 10 may sell S$2.2 million, while a 1,421 square foot 3-bedroom Cube 8 property on a high level in District 11 may fetch S$2.9 million. If older condominiums are examined, there are even more affordable freehold properties in the main neighborhoods.
Why are purchasers in the OCR paying greater or equal per square foot costs for 99-year leasehold homes?
Analysts BT spoke with mentioned familiarity with suburban areas, proximity to children’s schools, and proximity to elderly parents as critical concerns, particularly for HDB upgraders who want to stay in specific areas. According to Catherine He, Colliers’ director and head of research, the progressive payment structure for new launches also allows buyers to spread out their payments during the development period. Payments for a resale flat are made in advance, and the mortgage begins immediately.
Furthermore, purchasing a newly released device commits the user to long-term price increases. “If market conditions remain stable,” he says, “the project will almost certainly fetch a higher price by the time it is completed.” “Additionally, because homes take about three years to build, the Seller’s Stamp Duty (SSD) period would have ended, and buyers could lock in profits without (paying) SSD if they wanted to sell,” he says.
The gradual payment plan also assists young couples in overcoming the Total Debt Servicing Ratio (TDSR), which restricts a mortgagee’s total debt obligations to 55% of his or her income. An industry analyst claims that the pair can pay an option fee to purchase a new launch unit and receive financing only once building begins and progress payments commence.
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